Legal analysis · Morocco · Chinese investment
In under three years, Morocco has become one of the main gateways for Chinese industrial capital into Africa and Europe. Battery gigafactories, joint ventures with local holdings, tier-one suppliers setting up in industrial zones: the wave of large operations announced in 2024 and 2025 has shifted the Sino-Moroccan economic relationship from trade to productive investment. According to Rhodium Group data relayed by the economic press, Chinese capital committed in the Kingdom since the start of the decade approaches USD 6 billion. Beyond the figures, it is the legal structuring of these operations that deserves the attention of in-house legal teams. This article maps the investment forms observed, reads the legal framework that secures them, and draws practical implications for an operator considering a Moroccan footprint.
I. The Investment Forms Observed: A Typology
Recent operations follow no single template. Several types can be distinguished, from the most standalone to the most integrated.
1. Wholly/majority foreign-owned greenfield plants. The flagship case is the EV battery gigafactory announced by Gotion High-Tech in Kenitra in June 2024, with an initial investment of around USD 1.3 billion (about MAD 12.8 billion) and a 20 GWh capacity, the company signalling an ambition to reach 100 GWh. This format raises classic questions of corporate form (SA or SARL), governance and exchange-control treatment.
2. Joint ventures with a local partner. In Jorf Lasfar, the tie-up between Moroccan holding Al Mada and China’s CNGR Advanced Materials produced COBCO, dedicated to cathode precursors and materials (NMC and LFP chemistries) and recycling, for an investment of around USD 2 billion; its first line was inaugurated on 25 June 2025. The JV remains the preferred vehicle where local anchoring — land, feedstock access, institutional relationships — conditions feasibility. It calls for dense contractual work: shareholders’ agreement, governance, exit clauses, IP and risk allocation.
3. Tier-one and tier-two suppliers. Around the flagship plants, a supplier fabric is emerging: CITIC Dicastal for aluminium alloy wheels (around EUR 350 million, roughly 1,200 jobs, under an agreement signed with the Moroccan State), anode and cathode material makers (BTR), electrolyte (Tinci) and lithium refining (Yahua). Smaller operations add to this, such as the wholly Chinese-owned subsidiary announced in late 2025 by Jiangsu Yunyi Electric for about USD 66 million.
4. Industrial acceleration zones and development companies. A significant share of these projects settles in dedicated zones, foremost the Mohammed VI Tech City (Tanger Tech), whose development company includes a Chinese engineering operator (CCCC/CRBC group). The zone now hosts several Chinese firms in tyres, braking systems and battery components. This type engages free-zone law, customs status and location agreements.
5. Value-chain integration (“chain effect”). The most notable feature of recent operations is their clustering: batteries, precursors, anodes, cathodes, electrolytes and lithium refining tend to gather on the same territory to form a full chain from raw material to finished product. This integration multiplies intra-chain supply contracts, local-content stakes and traceability questions.
II. The Legal Framework Securing These Operations
These investments sit within a multi-layered national and treaty framework.
The bilateral treaty base. A bilateral agreement on the reciprocal encouragement and protection of investments binds China and Morocco: signed on 27 March 1995, in force since 27 November 1999, it guarantees fair and equitable treatment and the free transfer, in convertible currency, of assets related to the investment. This treaty remains in force; separately, discussions on a possible China-Morocco free trade agreement are under consideration on the Moroccan side in 2026. The double-taxation convention signed on 27 August 2002 (in force since 16 August 2006) frames the taxation of cross-border flows.
The national incentive framework. The 2022 Investment Charter (Law 03-22) and its one-stop shop (AMDIE) organise support schemes, while industrial acceleration zones offer a specific customs and tax status. Exchange regulation, administered by the Office des Changes, maintains capital controls but guarantees foreign investors the repatriation of dividends and disposal proceeds, within the limit of foreign-currency contributions.
Dispute resolution. Law 95-17 of 2022 modernised Moroccan arbitration law on a UNCITRAL-inspired model, with centres such as CIMAC (linked to Casablanca Finance City) and CMAC. As Morocco is a party to the 1958 New York Convention, awards benefit from an established recognition-and-enforcement regime — a confidence factor for investors seeking a neutral forum.
Rules of origin. One point warrants particular attention: Morocco’s access to the European market via its association agreement underpins the appeal of many export-oriented projects. European officials — including the Trade Commissioner — have publicly voiced vigilance over compliance with preferential rules of origin, amid heightened countervailing duties on Chinese-origin electric vehicles (an additional duty of up to ~35% for certain manufacturers, i.e. a combined rate of around 45% with the base duty). For the operator, rules-of-origin compliance (local transformation share, cumulation, traceability) is not incidental: it determines tariff eligibility and thus the project’s economics — a legal matter to address upfront.
III. Practical Implications for In-House Legal Teams
For an investor — Chinese or otherwise — as for a local partner, several watch-points emerge. First, the choice of vehicle shapes everything else: a standalone plant, a JV or a mere supply contract carry different governance, risk-sharing and exit treatment. Second, customs and origin structuring must be settled at the design stage: zone location, local transformation rate, origin documentation. Third, the map of protections — bilateral treaty, tax convention, arbitration clause, exchange regulation — should be established before signing, to align investment protection, lawful flow optimisation and dispute resolution.
This dual dimension — an investor from China, a transaction governed by Moroccan law — calls for bilateral support capability. In this respect, the UGGC Africa teams and the Casablanca office work alongside the China Desk of UGGC Avocats (Paris–Shanghai). In practice, coordination between counsel to the investing shareholder and counsel on local law is as much a safeguard as a time-saver: it prevents the parent company’s requirements and those of the host jurisdiction from being handled in silos.
Conclusion
The rise of Chinese investment in Morocco reflects a shift from a trading partnership to industrial value-chain integration, carried by varied legal vehicles and a now-mature treaty framework. For operators, value lies less in headline amounts than in the quality of structuring. This analysis is provided for information only and does not constitute personalised legal advice. As each transaction must be assessed on its own merits, we recommend consulting the UGGC Africa teams for any specific project. As the chain densifies and the prospect of a China-Morocco free trade agreement takes shape, monitoring this framework will remain decisive.
Key takeaways
What is the rise of Chinese investment in Morocco?
An acceleration, in 2024-2025, of Chinese industrial capital directed at Morocco’s battery and automotive sector, structured through varied legal vehicles and an established bilateral treaty framework.
What are the main types of investment observed?
- Wholly or majority foreign-owned industrial plants (e.g. the Gotion gigafactory in Kenitra).
- Joint ventures with a local holding (e.g. COBCO / Al Mada–CNGR in Jorf Lasfar).
- Tier-one and tier-two suppliers (e.g. CITIC Dicastal, BTR, Jiangsu Yunyi).
- Hosting in industrial acceleration zones (Mohammed VI Tech City / Tanger Tech).
- Full value-chain integration (the “chain effect”).
How are these operations legally secured?
Through the China-Morocco bilateral investment treaty (1995, in force since 1999, still applicable), the 2002 tax convention (in force since 2006), the 2022 Investment Charter, the industrial acceleration zone regime, exchange regulation and Arbitration Law 95-17 (1958 New York Convention).
What are the practical implications for an in-house legal team?
The choice of vehicle (standalone plant, joint venture or supply contract), customs and rules-of-origin structuring, and the map of protections must be settled before signing — preferential origin conditions access to the European market on tariff terms.
Considering an industrial footprint in Morocco? Contact the UGGC Africa team